PERMPT
After sealing the land deals and conducting a geologic assessment to define target resources and potential development areas, the next step in most successful coalbed methane (CBM) projects is a pilot well program. A pilot program will determine reservoir quality and gas-in-place for the potential development areas. Coalbed methane reservoirs are typically marginal reservoirs compared to conventional oil and gas reservoirs. The gas in place is usually sufficient but commercial production results from a) exceptional reservoir properties and b) exceptional economic parameters (gas prices). Reservoir characteristics must be understood for an economic play to emerge or expand beyond a pilot project.

The reservoir properties which have the greatest impact on methane gas productivity from coal seams are 1) gas content, 2) permeability, 3) the desorption isotherm, 4) initial water saturation, and 5) net coal thickness.

In order to have a successful project, a threshold gas content and threshold permeability must be determined to eliminate areas of low potential for economic development. Each year, many coal seams which do not meet the above criteria for commercial success are hydraulically fractured (at large expense). PermPT testing ensures that available completion dollars are spent on the candidate seams that offer the best opportunity for maximizing NPV

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